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8 Best Personal Loans in Singapore with Lowest Interest Rates (May 2024)

singapore-personal-loans-best-interest-rates
singapore-personal-loans-best-interest-rates

If you’re in urgent need of money, but are too paiseh to borrow from your family and friends, your best bet is probably a personal loan.

With a personal loan, you borrow cash from a bank or financial institution and pay them back in fixed instalments over an agreed period. But you’d typically need to meet a minimum income requirement and the bank will check your credit history.

Still, it’s generally much cheaper and safer to get a personal loan from a bank rather than engage a moneylender. Here’s a look at the personal loans with the lowest interest rates in Singapore in May 2024.

Best personal loans in Singapore (May 2024)

    1. At a glance: Best personal loans in Singapore

    2. What do interest rate, EIR and processing fees mean?

    3. UOB Personal Loan

    4. Standard Chartered CashOne

    5. GXS FlexiLoan

    6. Trust Instant Loan

    7. CIMB Personal Loan

    8. Citibank Quick Cash (New Customers)

    9. DBS/ POSB Personal Loan

    10. HSBC Personal Loan

    11. Which personal loan should you choose?

    12. Term loan vs credit line—which should you choose?

    13. Being in debt is not fun…

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1. At a glance: Best personal loans in Singapore (May 2024)

Here are the current starting interest rates on offer from the most popular personal loan providers in Singapore. We’ll use the example of a Singapore citizen earning $2,500 a month, who wants to borrow $10,000 and repay it over 3 years.

Personal loan

Interest rate and Effective Interest Rate (EIR)

Processing fee

Monthly repayment

Eligibility

DBS/ POSB Personal Loan

2.68% (EIR 5.43%)

1%

$300

– Singapore Citizen/PR: $20,000
– Foreigners with existing Cashline and/or Credit Card account: $20,000
– Existing DBS/POSB customers

Trust Instant Loan

2.79% (EIR: 5.27%)

0%

$301

– Singapore Citizen/PR: $30,000
– Foreigner: $60,000

UOB Personal Loan

2.88% (EIR 5.43%)

0%

$302

– Singapore Citizen/PR: $30,000
– UOB Credit Card/CashPlus customer

Standard Chartered CashOne

2.88% (EIR: 5.84%)

0%

$302

– Singapore Citizen/PR: $20,000
– Foreigner: $60,000

HSBC Personal Loan

2.92% (EIR: 5.50%)

0%

$302

– Singaporean/PR: $30,000 for salaried workers, $40,000 for self-employed or commission-based workers
– Foreigner: $40,000

GXS FlexiLoan

2.99% (EIR 5.65%)

0%

$303

– Singapore Citizen/PR: $20,000

CIMB Personal Loan

3.38% (EIR 6.38%)

0%

$306

– Singapore Citizen/PR: $20,000

Citibank Quick Cash (New Customers)

3.45% (EIR: 6.5%)

0%

$307

– Singaporean/PR: $30,000
– Foreigner: $42,000
– Rates apply to new Citi customers only

Not mentioned in this table is OCBC’s ExtraCash personal loan which brings you up to 5.43% interest rate (EIR 11.47%) amounting to $323 monthly repayment with a $100 processing fee.

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2. Hold up. What do interest rate, EIR and processing fees mean?

There’s quite a bit of jargon here, so let’s go through some points of confusion that may be swimming around in your head.

Interest rates: Notice that interest rates are quoted as “from X%” instead of being stated simply as “X%”? That’s because personal loans are pretty dynamic as they all depend on factors such as

  1. Your credit history

  2. How much you want to borrow (the loan amount)

  3. For how long (called the loan tenure)

Banks often personalise your interest rate when you submit an application, so, typically, you’ll see the final interest rate only after your application is approved.

EIR: EIR stands for Effective Interest Rate. Taking into consideration other fees (like processing fee; see next point) and the loan repayment schedule, it is a more accurate reflection of the cost of borrowing than the advertised interest rates.

Processing fee: This is the main hidden cost of personal loans and is worth highlighting. The processing fee is deducted from the principalmeaning, for a $10,000 loan with a $100 (or 1%) processing fee, you get only $9,900 in cash. As a borrower, you might not “feel” it, but it does eat into your funds and increase the cost of borrowing.

Now, let’s walk through the 8 personal loan packages highlighted.

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3. DBS/POSB Personal Loan

DBS logo
DBS logo

Per Month

S$439

Per Month

Online Promo

DBS Personal Loan

Interest Rate*
EIR: From 5.43%
What is Effective Interest Rate (EIR)?
The true cost of taking a loan in Singapore. Loan interest rate is not the only cost, and there are often other costs such as admin fees.

From 2.68%

Total Amount Payable

S$10,536

Processing Fee
What is a processing fee?
The processing fee can either be a percentage or a fixed amount on top of the loan. It is usually applied as a once-off charge at the beginning of the loan.

From 1% of Approved Loan Amount

Per Month
Risk-Based Pricing
DBS' EIR fluctuates based on factors such as income, citizenship status and credit score. This is known as Risk-Based Pricing. Thus, your final monthly payment might be higher than what is shown here.

S$439

Read More

More Details

Key Features

  • *Note that the rates provided to you are customised and might differ from what's displayed here. DBS Bank is regulated by the Monetary Authority of Singapore.

See all loan details 

POSB logo
POSB logo

Per Month

S$300

Per Month

Online Promo

POSB Personal Loan

Interest Rate*
EIR: From 5.43%
What is Effective Interest Rate (EIR)?
The true cost of taking a loan in Singapore. Loan interest rate is not the only cost, and there are often other costs such as admin fees.

From 2.68%

Total Amount Payable

S$10,804

Processing Fee
What is a processing fee?
The processing fee can either be a percentage or a fixed amount on top of the loan. It is usually applied as a once-off charge at the beginning of the loan.

From 1% of Approved Loan Amount

Per Month
Risk-Based Pricing
POSB's EIR fluctuates based on factors such as income, citizenship status and credit score. This is known as Risk-Based Pricing. Thus, your final monthly payment might be higher than what is shown here.

S$300

Read More

More Details

Key Features

  • Existing POSB/DBS users can apply directly to receive instant cash disbursement to your POSB/DBS account!

  • *Note that the rates provided to you are customised and might differ from what's displayed here. POSB Bank is regulated by the Monetary Authority of Singapore.

See all loan details 

The DBS/POSB personal loan is only open to existing DBS/POSB customers. If you already have (1) a DBS/POSB Cashline account or have a DBS/POSB credit card and (2) credit your salary into a DBS or POSB deposit account, you can get the cash disbursed instantly.

The loan is open to Singaporeans and PRs, as well as foreigners with DBS/POSB Cashline or credit card accounts. You must be aged 21 to 70 years with a minimum annual income of $20,000—this opens up DBS/POSB personal loans to include slightly older groups of people and lower income earners compared to other banks.

Like the Standard Chartered CashOne loan, you don’t need to earn a regular salary to be eligible for this loan. Self-employed individuals and commission earners can also apply.

DBS’s personal loan promises interest rates as low as 2.68%. There is a processing fee of 1%, bringing the lowest possible EIR to 5.43%. Loan tenures of 6 months to 5 years are available.

As usual, these are the lowest possible rates and the actual interest rate depends on what DBS is prepared to extend to you. According to their website, if your annual income is below $30,000, you will be offered a rate of 11.00%p.a. + 4% processing fee (E.I.R. 20.01%p.a.) for a 5-year loan.

Renovating your home? Instead of a personal loan, take a renovation loan like the DBS Eco-aware Renovation Loan.

DBS logo
DBS logo

Per Month

S$325

Per Month

MoneySmart Exclusive

DBS Eco-aware Renovation Loan

Interest Rate

From 5.68%

Total Amount Payable

S$11,704

Processing Fee (Approved Loan)

S$200

Per Month

S$325

Apply Now

More Details

Key Features

  • Borrow up to S$30,000

  • Flexible Repayments: 1 year to 5 year loan tenure

  • Issuance of Cashier's Order: Maximum of 4 Cashiers Orders

See all loan details 

DBS/POSB Personal Loan promotion

Get more out of your DBS/POSB Personal Loan—enjoy 2% unlimited cashback and up to S$300 eCapitaVouchers when you apply via MoneySmart. T&Cs apply.

Promotion valid until 30 Jun 2024.

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4. Trust Instant Loan (Trust personal loan)

Trust Bank logo
Trust Bank logo

Per Month

S$301

Per Month

MoneySmart Exclusive

Trust Instant Loan

Interest Rate*
EIR: From 5.27%

From 2.79%

Total Amount Payable

S$10,837

Processing Fee

S$0

Per Month

S$301

MoneySmart Exclusive:

Get up to S$900 Cash via PayNow when you apply for a Trust Instant Loan through MoneySmart! T&Cs apply.
 
PLUS get up to S$70 FairPrice E-Vouchers from Trust when you sign up with the referral code MONEYSMT. T&Cs apply.

Valid until 31 May 2024

Apply Now

More Details

Key Features

  • Low rates, no processing fees

  • Flexible repayment

  • Fast approval

  • For a limited time only, enjoy low interest rates from 2.79% (EIR from 5.27%)

  • Interest Rate of 2.79% is not guaranteed and it’s based on applicants’ credit risk.

  • *Note that the rates provided to you are customised and might differ from what is displayed here.

See all loan details 

When they say “instant”, they mean it. Trust’s personal loan, called Trust Instant Loan, disburses cash to you in just 60 seconds with the Trust credit card.

This is how it works: You have a Trust credit card with a certain available credit balance at any one point in time. The Trust Instant Loan converts a portion of that balance into cash for you. Spend that cash on anything you want!

The Trust Instant Loan is open to all Trust customers. Given how it works, as I just explained above, you do need to have a Trust credit card to be eligible. But this isn’t a bad thing—for one thing, it makes repaying the loan seamless. Each month, you’ll see your loan instalment charged to your credit card bill. To pay the instalment, simply pay through your credit card statement via your Trust App.

Aside from being fast, the Trust Instant Loan is also affordable with an interest rate starting from just 2.79% p.a. (EIR from 5.27% p.a.). They also charge no processing fees, annual fees, or the like. However, there is a 3% early repayment fee on your remaining loan amount if you repay the rest of your loan early.

While only Singapore Citizens and PRs are eligible for the GXS FlexiLoan, the Trust Instant Loan is open to Singapore Citizens, PRs, and Foreigners aged 21 to 65 years old. You could be a salaried worker, commission-based, or self-employed as long as your annual income is $30,000 for Singaporeans or $60,000 for Foreigners.

Trust Instant Loan promotion

From now till 31 May 2024, get up to S$900 Cash via PayNow when you apply for a Trust Instant Loan through MoneySmart.

Don’t forget to sign up with the referral code MONEYSMT to also get up to S$70 FairPrice E-Vouchers from Trust!

T&Cs apply.

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5. UOB Personal Loan

Sponsored

UOB logo
UOB logo

Per Month

S$441

Per Month

MoneySmart Exclusive

Faster Gift Redemption

UOB Personal Loan

Interest Rate*
EIR: From 5.43%
What is Effective Interest Rate (EIR)?
The true cost of taking a loan in Singapore. Loan interest rate is not the only cost, and there are often other costs such as admin fees.

From 2.88%

Total Amount Payable

S$10,576

Processing Fee
What is a processing fee?
The processing fee can either be a percentage or a fixed amount on top of the loan. It is usually applied as a once-off charge at the beginning of the loan.

0%

Per Month

S$441

MoneySmart Exclusive:

[Faster Gift Redemption | FLASH DEAL]
Get attractive gifts like an Samsung Galaxy S24, 512GB (worth S$1,458) or an Apple iPad Air, 64GB (worth S$895.40) or an Apple Watch Series 9 (GPS), 45mm (worth S$655) or an Apple iPad 9th Gen, 64GB (worth S$508.30) or up to S$1,200 Cash via PayNow!
 
PLUS get up to S$400 Cash Bonus when you apply through MoneySmart! T&Cs apply.

Valid until 22 May 2024

Apply Now

Apply Now

 image
image
 image
image

More Details

Key Features

  • Loans starting from S$1000

  • Loan tenure period of minimum 1 year to a maximum of 5 years

  • Rates from 2.88% p.a. (EIR from 5.43%) + 0% Processing Fee

  • No documents required for existing Credit Card members

  • Instant approval for applications submitted between 8am to 9pm for new UOB customers. Terms and conditions apply.

  • UOB Bank is regulated by the Monetary Authority of Singapore.

  • At MoneySmart, we strive to keep our information accurate and up to date. This information may be different from what you see when you visit a financial institution, service provider, or specific product site. MoneySmart shall not be liable to compensate the Customer should the information is not as updated as our Partner.

See all loan details 

UOB’s personal loan is only open to existing UOB credit cardholders or CashPlus customers who are Singaporeans, PRs aged 21 to 65. You’ll also need to be a salaried worker earning at least $30,000 a year. Not an existing UOB customer? You’ll have to get a UOB credit card or CashPlus to apply for a UOB Personal Loan.

The interest rate is from 2.88% p.a. for a loan periods of 12, 24, 36, 48 or 60 months, with a 5.43% p.a. EIR.

While UOB used to only waive processing fees for loan periods 24 months and up, processing fees are now waived for all loan periods.

If you’re an existing UOB customer, you can get instant approval when you apply for your personal loan online.

UOB Personal Loan promotion

Thinking of applying for a UOB Personal Loan? Apply now via MoneySmart to get gifts such as:

  • Samsung Galaxy S24, 512GB (worth S$1,458)

  • Apple iPad Air, 64GB (worth S$895.40)

  • Apple Watch Series 9 (GPS), 45mm (worth S$655)

  • Apple iPad 9th Gen, 64GB (worth S$508.30)

  • Up to S$1,200 Cash via PayNow

Valid until 31 May 2024. T&Cs apply.

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6. Standard Chartered CashOne

Standard Chartered logo
Standard Chartered logo

Per Month

S$441

Per Month

MoneySmart Exclusive

Receive Cash in 15 mins! | HIGHEST CASHBACK

Standard Chartered CashOne

Interest Rate*
EIR: From 5.84%
What is Effective Interest Rate (EIR)?
The true cost of taking a loan in Singapore. Loan interest rate is not the only cost, and there are often other costs such as admin fees.

From 2.88%

Total Amount Payable

S$10,576

Processing Fee
What is a processing fee?
The processing fee can either be a percentage or a fixed amount on top of the loan. It is usually applied as a once-off charge at the beginning of the loan.

S$0

Per Month

S$441

MoneySmart Exclusive:

[HIGHEST CASHBACK]
Get up to S$1,200 Cash via PayNow or attractive gifts like an Apple iPhone 15, 256GB (worth S$1,472.50) or an Apple iPad Air, 64GB (worth S$895.40) or a Sony PS5 (SLIM) Digital Edition (worth S$669)! T&Cs apply.
 
Additionally, get up to S$4,100 Cashback from SCB, now that’s up to S$5,300 worth of cash rewards*!

Valid until 31 May 2024

Apply Now

More Details

Key Features

  • Interest Rate of 2.88% is not guaranteed and it’s based on the applicants' credit risk

  • *Note that the rates provided to you are customised and might differ from what is displayed here. Standard Chartered Bank is regulated by the Monetary Authority of Singapore.

  • Subject to a max loan amount of S$250,000

  • Note: No processing fees, but first year annual fee of $199 applies. $50 annual fee for subsequent years (waived if all payment is received by due date for the past 12 months).

  • Learn more about the key features and details of Standard Chartered CashOne Loan.

  • If you are looking for an emergency loan, learn more about the different personal loans with fast approval.

See all loan details 

Standard Chartered CashOne personal loan is open to Singapore Citizens, PRs and foreigners with a Singapore Employment Pass aged 21 to 65.

The barriers to entry for the Standard Chartered CashOne personal loan are slightly lower than for other banks. The minimum annual income requirements are $20,000 for Singaporeans and PRs (that’s lower than for other banks!) and $60,000 for foreigners. You also don’t necessarily need to be a salaried worker to apply—Standard Chartered is cool with salaried employees, variable/commission-based employees, and even self-employed individuals.

You can apply for this personal loan online by signing in through SingPass and receive your loan disbursement within 15 minutes. There’s no need to be an existing Standard Chartered customer to get this personal loan.

So, it’s fast—but is it also affordable? Standard Chartered charges an initial annual fee of $199 (deducted from your approved loan) for any loan tenure between 1 to 5 years. From the second year onwards, you won’t have to pay any more annual fees—UNLESS you miss any instalments, in which case you will pay $50 in annual fees for that year. Plus the late payment fee of $100. Lesson learnt: Don’t miss your payments!

Because of the $199 fee, CashOne is more worthwhile if you’re taking out a big loan. A $10,000 loan would mean you’d be paying a fee worth 1.99% of your principal amount.

Interest rates are advertised as starting from 2.88%, working out to an EIR of 5.84% and above. In reality, interest rates are personalised, so yours might differ from this example.

If you’re renovating your home, Standard Chartered also offers a renovation loan version of their CashOne loan.

Standard Chartered logo
Standard Chartered logo

Per Month

S$307

Per Month

Instant Approval & Cash Disbursement

Standard Chartered CashOne (Renovation)

Interest Rate

From 3.48%

Total Amount Payable

S$11,044

Processing Fee

S$0

Per Month

S$307

Read More

More Details

Key Features

  • Get your loan disbursed in your account within 15 minutes!

  • Borrow up to 4x your monthly income, subject to a max loan amount of S$250,000

  • Enjoy interest rates from 3.48% p.a.

  • Note that the rates provided to you are customised and might differ from what is displayed here.

  • Enjoy 0% interest rates for 1-year loan tenure, with 4.5% processing fees that will be deducted from total disbursed loan.

See all loan details 


ALSO READ5 Tips To Save Money on Your BTO Renovation, According to an Experienced Interior Designer


Standard Chartered CashOne promotion

From now till 16 May 2024, apply for a Standard Chartered CashOne loan via MoneySmart to get attractive gifts like:

  • Up to S$1,200 Cash via PayNow

  • Apple iPhone 15, 256GB (worth S$1,472.50)

  • Apple iPad Air, 64GB (worth S$895.40)

  • Sony PS5 (SLIM) Digital Edition (worth S$669)

Plus, get up to S$500 in a cash bonus on top of your base gift! T&Cs apply.

Standard Chartered is also offering cashback and vouchers when you take a CashOne loan with them. Receive cashback equivalent to 3 times the interest on your first instalment and 1% of the approved loan in the form of Fairprice e-vouchers if you’re a new customer. Here’s an idea of what that will look like:

standard-chartered-cashone-loan-cashback-vouchers
Image: Standard Chartered

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7. HSBC Personal Loan

HSBC logo
HSBC logo

Per Month

S$441

Per Month

Online Promo

Quick Application via MyInfo, Instant Disbursement

HSBC Personal Loan

Interest Rate*
EIR: From 5.5%
What is Effective Interest Rate (EIR)?
The true cost of taking a loan in Singapore. Loan interest rate is not the only cost, and there are often other costs such as admin fees.

From 2.92%

Total Amount Payable

S$10,584

Processing Fee
What is a processing fee?
The processing fee can either be a percentage or a fixed amount on top of the loan. It is usually applied as a once-off charge at the beginning of the loan.

S$0

Per Month

S$441

Apply Now

More Details

Key Features

  • You will need a Personal Line of Credit account to apply for Instalment Plan (Personal Loan)

  • The current promotional interest rate for HSBC Instalment Plan (Personal Loan) is from 2.92% p.a. (EIR 5.5% p.a.) with no processing fee

  • The maximum period for repayment of HSBC personal loan (instalment plan with fixed monthly payment) is 7 years - Unique feature is most banks in Singapore are offering up to 5 years only

  • The HSBC Personal Line of Credit Instalment Plan (Personal Loan) has a tenure of 1-7 years.

  • A minimum loan size of SGD 10,000 and a tenor of at least 2 years get rewarded with a total cash back of SGD 3,000

  • No supporting documents are required for existing HSBC Personal Line of Credit customers

  • The minimum annual income for employed Singaporeans/PR to qualify for HSBC Personal Line of Credit is S$30K. For foreigners, the minimum annual income amount is S$10K higher than Singaporeans/PRs - S$40K

  • The maximum amount a Singaporean/PR with an annual income of S$30K can obtain with the HSBC personal loan is 4X your monthly income. Individuals earning an annual income of S$120K are able to obtain up to 8X their monthly income

  • Foreigners with annual income of at least S$40K can get a credit limit of up to 1X their monthly salary

  • The minimum monthly payment for the HSBC Personal Loan is 3% or SGD 15, whichever is higher

  • The late payment fee for HSBC Personal Loan is S$75

  • There is an annual fee of S$60 every year (first year waived)

  • Note that the rates provided to you are customised and might differ from what is displayed here. HSBC is regulated by the Monetary Authority of Singapore.

See all loan details 

HSBC’s personal loan is open to Singaporeans and PRs aged 21 to 65 years old with an annual income of $30,000 and above for salaried workers, and $40,000 for self-employed or commission-based workers. Foreigners must earn at least $40,000 a year and have an employment pass with at least 6 months’ validity.

The best part about HSBC’s personal loan is its long loan tenure of up to 7 years—currently the longest loan tenure in Singapore. So if you need to borrow a large sum but can’t afford high monthly repayments, HSBC’s personal loan is definitely one you should consider.

HSBC is currently offering competitive promotional interest rates starting from 2.92% p.a. with the EIR  from 5.50% p.a. with no processing feesRemember, however, that actual interest rates will vary from person to person.

On top of that, enjoy up to 1.5% cashback on your HSBC Personal Loan from now till 30 Jun 2024. You need to take a minimum loan amount of  $10,000 for a period of at least 3 years for this promotion.

Another factor to consider is that HSBC’s personal loan comes with an annual fee of $120, and only the first year’s fee is waived. Don’t miss your payments, or you’ll be subject to a $120 late payment fee. These fees used to be $60 and $75 respectively, but have been bumped up to $120 since 8 Jan 2024.

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8. GXS FlexiLoan

GXS logo
GXS logo

Per Month

S$303

Per Month

GXS FlexiLoan

Interest Rates*
EIR: From 5.65%
What is Effective Interest Rate (EIR)?
*Effective Interest Rate (EIR) is calculated based on an average loan amount of S$10,000 with a 36-month repayment period, from 1 Jan 2023 to 1 Jan 2026.

From 2.99%

Total Amount Payable

S$10,897

Processing Fee
What is a processing fee?
The processing fee can either be a percentage or a fixed amount on top of the loan. It is usually applied as a once-off charge at the beginning of the loan.

S$0

Per Month

S$303

Read More

More Details

Key Features

  • Apply and get approved in minutes

  • No hidden fees (no annual, processing, early repayment or late fees), but late interest is chargeable upon late repayment

  • A standby revolving credit line which you can draw multiple loans from, from as low as $200*

  • Customisable loan tenure from 2 to 60 months depending on loan amount selected

  • Repayment is done in equal monthly instalments

  • Ability to choose your preferred repayment date

  • Save on interest when you repay early

  • Interest is computed on a daily non-compounding basis

  • In-app reminders to repay on time and avoid late interest charges

  • *Interest rates from 2.99% p.a. (5.65% p.a.). GXS Bank is regulated by the Monetary Authority of Singapore

  • *T&Cs Apply. For more information on GXS FlexiLoan, please refer to the T&Cs here www.gxs.com.sg/flexiloan

See all loan details 

GXS is a digital bank that’s 60% owned by Grab and 40% owned by Singtel. Now, don’t be dissuaded by the idea of a digital bank. Like any regular bank, GXS offers customers a personal loan—and a pretty good one at that.

With a loan tenure between 2 and 60 months, GXS FlexiLoan interest rates start from 2.99%p.a., with an EIR of 5.65% p.a.. This is one of the best EIRs around currently, second only to UOB’s personal loan with an EIR of 5.43% p.a..

On top of that, GXS FlexiLoan doesn’t charge any annual, processing, early repayment or late fees—something almost unheard of when it comes to loans from your traditional banks. You heard that right, repay your loan early with no extra charges! However, GXS will charge you late interest if your repayments are late, so you won’t get off scot-free.

One downside to the GXS FlexiLoan is that foreigners aren’t eligible. It’s only for Singapore Citizens and Singapore Permanent Residents between 21 and 65 years old. The minimum annual income is S$20,000.

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ALSO READShould You Take A Personal Loan To Help With The Rising Costs Of Living?


 

9. CIMB Personal Loan

CIMB logo
CIMB logo

Per Month

S$306

Per Month

MoneySmart Exclusive

CIMB Personal Loan

Interest Rate
EIR: 6.38%

3.38%

Total Amount Payable

S$11,014

Processing Fee

S$0

Per Month

S$306

MoneySmart Exclusive:

[LOWEST INTEREST RATE*]
Get attractive gifts like an Apple iPhone 15, 128GB (worth S$1,311) or a Sony PlayStation®5 (SLIM) Disc Edition (worth S$799) or an Apple Watch Series 9 GPS 45mm (worth S$655) or a Samsung 27-inch Smart Monitor M5 (worth S$432) or up to S$1,200 Cash via PayNow when you apply for a loan through MoneySmart! T&Cs apply
 
For a limited time only, enjoy the lowest flat interest rate from 2.80%p.a. (EIR from 5.28% p.a.) when you get approved for a min. loan amount of S$30,000 and above!

Valid until 31 May 2024

Apply Now

More Details

Key Features

  • No processing fee for approved loan amount of S$5,000 and above.

  • Loan tenure of 1-5 years

  • Max loan amount of S$200,000

  • Get up to 8x* of your monthly income

  • No prerequisite to have a CIMB Bank Account or CIMB Credit Card before you apply

  • By clicking on "Apply Now", you will be applying for a CIMB Personal Loan

See all loan details 

The CIMB Personal Loan is another personal loan that comes with no processing fees—if you take a loan amount of at least $5,000. Smaller loan amounts (the minimum is $2,000) will be subject to a processing fee of 1% and a super high interest rate of 9%—that’s an EIR between 16.17% to 18.15%!

For higher loan amounts, CIMB offers rates from 2.80% (EIR: From 5.28%) for loan tenures between 3 to 5 years. Here’s a breakdown:

cimb-personal-loan-interest-rates-mar-2024
Image: CIMB

The CIMB personal loan interest rates may be steep if you’re taking a smaller loan, but CIMB is also offering a cashback promotion to sweeten the deal. The cashback you’ll earn offsets some of the interest you’ll be charged, but not the bulk of it.

cimb-personal-loan-cashback
Image: CIMB

As far as eligibility goes, the CIMB Personal Loan is fairly standard. It’s open to Singapore Citizens and Singapore PRs with a minimum annual income of $20,000, but not open to foreigners. You’ll also need to be 21 to 70 years old—that maximum age sits between the Citibank and DBS personal loan age limit. There’s no prerequisite to have a CIMB Bank Account or CIMB credit card before you apply, so go ahead as long as you meet the criteria above.

Like any personal loan, you’ll incur a penalty fee if you try to repay it early. For the CIMB Personal Loan, this fee is 3% of the outstanding loan amount or $250, whichever is higher. That’s a higher minimum than that for the UOB and Standard Chartered personal loans we talked about above. For both of those, the early repayment fee is the higher of 3% or $150.

CIMB Personal Loan promotion

Apply for a CIMB Personal Loan via MoneySmart and get gifts like:

  • Apple iPhone 15, 128GB (worth S$1,311)

  • Sony PlayStation®5 (SLIM) Disc Edition (worth S$799)

  • Apple Watch Series 9 GPS 45mm (worth S$655)

  • Samsung 27-inch Smart Monitor M5 (worth S$432)

  • Up to S$1,200 Cash via PayNow

Additionally, snag the lowest flat interest rate from 2.80%p.a. (EIR from 5.28% p.a.) with a mininum loan amount of S$30,000 and above.

Valid till 31 May 2024. T&Cs apply.

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10. Citibank Quick Cash (New Customers)

The 3.45% (EIR: 6.5%) Citibank Quick Cash is only available to customers who are completely new to Citibank loans. If you already have a Citibank loan, you’ll be given a higher interest rate.

Just log into the Citi Mobile App, key in the amount of cash you need and you can get the funds instantly.

Citi Quick Cash is open to Singapore Citizens and PRs (salaried or self-employed) with a minimum annual income of $30,000, and foreigners with an annual income of at least $42,000. The eligible age range is 21 to 65 years.

With Citibank’s Quick Cash personal loan, you can choose a tenure of 12, 24, 36, 48, or 60 months—all with zero processing fees. You can get 3.56% interest rate on Citibank’s personal loan with a shorter 1-year tenure, or 3.45% if you intend to drag your loan repayment to 3 years. While the interest rates differ according to tenure period, you’ll get an EIR of 6.5% for all.

Citi-Quick-Cash-personal-loan-interest-rates
Source: Citibank

That said, don’t take our word for it. Rates are customised, so what you get might not be exactly the same as the above examples.

Do note that these rates are only for new Citi Credit Card or Citibank Ready Credit account holders. Existing customers have their own rates, and can apply for a personal loan via the Citi Mobile App without the need to provide any additional documents.

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11. Which personal loan should you choose?

If you’re just looking for the cheapest personal loan, the UOB Personal Loan and Standard Chartered CashOne personal loan are your best bets. Citibank’s Quick Cash is also a good option to consider if you’re a new Citi customer. 

That said, remember that the actual interest rate a bank offers you will depend on factors like your credit history, how much you want to borrow and for how long. So if you don’t get offered the lowest advertised interest rates with one bank, you might want to compare that with what the other banks are willing to offer you.

There are certain groups of individuals that may have a harder time taking out a personal loan.

  • Older individuals: If you’re above 65 years old, DBS/POSB and CIMB will let you apply for personal loans up to the age of 70 years.

  • Those earning an annual income below $30,000: The Standard Chartered CashOne, GXS FlexiLoan, DBS Personal Loan, and CIMB Personal Loan all have a lower minimum annual income requirement of $20,000.

  • Commission-based workers or self-employed individuals: Citibank Quick Cash, HSBC Personal Loan, DBS Personal Loan and Standard Chartered CashOne are good options. Some other banks may only accept salaried workers.

If you need the cash ASAP, the fastest options are the DBS Personal Loan (for existing DBS customers), UOB Personal Loan (for existing UOB customers), and Standard Chartered CashOne.

On the other hand, if you don’t need the cash fast but do need a long tenure period to repay a large loan amount, HSBC’s personal loan currently offers the longest tenure in Singapore of 7 years.

Whatever personal loan package you choose, opt for the smallest loan amount and shortest term you can comfortably manage. This will keep your interest payments to a minimum.

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12. Term loan vs credit line—which should you choose?

While researching personal loans, you might have come across many different loan types, some of which do not seem to fit what we described above.

MoneySmart lists only term personal loans, which is when you borrow a fixed sum with a fixed repayment plan that you agree on before you see the cash.

We usually recommend these loans because they have much lower interest rates. You can pay back slowly and steadily at a pace comfortable to your financial situation.

Many banks also offer a personal line of credit—sometimes called a credit line, revolving loan, or even “flexible repayment loan”.

This is a pre-approved amount of money you can cash out in part or whole, but you need to repay it ASAP or else face sky-high interest rates. Don’t fall for it unless you’re absolutely confident you can pay the money back immediately.

These days, most banks base their personal loans on either your personal line of credit or credit card limit. So you will need either a credit card or credit line to get the loan. However, it is still considered a term loan if it comes with a structured repayment plan.

But before you sign up, understand that your credit cards with this bank will be as good as dead because you’ll have effectively “spent” your credit on a cash loan.

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13. Being in debt is not fun…

But it can be prevented. If you must take out a loan, channel all your energies into paying it off on time to avoid late charges. In the meantime, re-examine your income and budget, making a note of everything you spend on, so you won’t have to resort to loans again.

Ideally, you should draw up a budget that gives you enough leeway to set aside some cash for the future without starving to death.

You should also build up an emergency fund worth a few months’ expenses. If you’re hit with unforeseen  circumstances, you can dip into this fund instead of having to take a loan.

It’s also a good idea to know what types of insurance you need. We recommend hospitalisation insurance at a bare minimum, and life insurance if you have dependents. Being sufficiently insured ensures that you don’t get hit with huge bills if the unexpected happens.

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We’ve also reviewed the Best Personal Loan Offers in Hong Kong. Check them out!

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The post 8 Best Personal Loans in Singapore with Lowest Interest Rates (May 2024) appeared first on the MoneySmart blog.

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The post 8 Best Personal Loans in Singapore with Lowest Interest Rates (May 2024) appeared first on MoneySmart Blog.

Original article: 8 Best Personal Loans in Singapore with Lowest Interest Rates (May 2024).

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